BFI: Currency market commentary



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BFI: Currency market commentary

29.06.2010 10:28 Tuesday

 This currency pair just after breaking support at 1.2270 peaked toward 1.2230 and lower.  Moreover, in case falls below 1.2170  the nearest pause should be not earlier than 70 pips lower. According to the current situation We suggest to use any occasional jump to sell euro and the first preferable level should be the resistance at 1.2270. However jump above 1.2330  means that the market may add 170 pips easily.


It seems that the support around 1.0850 may survive the temporary bears attack with a possible rebound reaction as high as 1.0950. Indeed the support mentioned before shall be the perfect level for another movement higher especially when the resistance around 1.0900 is within our reach. On the other hand testing levels at 1.0800 may be only possible in case any longer march toward 1.0750.


This pair has a significant support around 1.5020 and falls below that level may drive this currency cross down to 1.4950. Today We forecast to open short positions from 1.5110 area with a stop loss order no more that 40 pips and  targets exactly around 1.4950.


As this pair is trying to defend support at 108.00 any stronger rebound may reach even 109.70  till end of the week. On the other hand falls below that support may smoothly add another 30/60 pips down so our recommendation perceives opening longs from 107.80 with a stop loss order around 107.50 while as testing  that level may be read as a change of sentiment for more bearish with targets below 107.00.